The Federal Government has announced that they will ask the Productivity Commission to examine the ways the Government can provide improved support to parents with newborn children. In particular, the inquiry will investigate the economic, productivity and social costs and benefits of paid maternity, paternity and parental leave, the extent of current employer provision of such leave, and paid maternity, paternity and parental leave models that could be used in the Australian context.
The terms of reference for the Productivity Commission Inquiry are as follows:
The Australian Government wants to consider how to improve support for parents with new born children. The context for this in the need to ensure strong and sustainable economic growth, adjust to the imperatives of an ageing population, promote the early development of children and support families in balancing work and family responsibilities.
In examining the costs and benefits of paid maternity, paternity and parental leave, factors the Commission will be asked to assess include: the impact on small and medium sized businesses; the workforce participation of women; the work/family preferences of both parents in the first two years after the child's birth; the post-birth health of the mother; the development of young children; and relieving the financial pressures on families.
The Federal Sex Discrimination Commissioner Elizabeth Broderick welcomed the terms of reference for the inquiry, stating that the inquiry provides Australia with an opportunity not only to play catch up, but to put in place a well considered, well modelled system of paid leave for women and men which will deliver both sustainable economic growth and social wellbeing.
The Human Rights and Equal Opportunity Commission (HREOC) has proposed, as a minimum, a national scheme of government-funded 14 week paid maternity leave and two weeks paid paternity leave, paid at the level of the federal minimum wage. This is in keeping with the International Labour Organisation's Maternity Protection Convention 2000 (No. 183), which states that countries should provide at least 14 weeks of paid maternity leave. Currently, Australia is one of only two OECD countries who have not legislated for paid maternity leave.
However, Ms Broderick does also state the importance of ensuring that any paid maternity leave proposal does not act as a disincentive to employ women and that small and medium sized businessed are not adversely impacted upon by the costs or administration associated with any scheme.
The Australian Chamber of Commerce and Industry has also spoken of the importance of ensuring that any proposal should be economically realistic. Peter Anderson, acting chief executive of the Australian Chamber of Commerce and Industry, told the Australian Associated Press, that small and medium business had a different capacity to pay. Mr Anderson further stated that the current baby bonus formed a de facto maternity leave schem.
The baby bonus of $4133 is currently available for new mothers. In comparison, a 14 week paid maternity leave scheme at the minimum wage, as proposed by HREOC as a minimum standard, would result in new mothers who take maternity leave receiving $7309.
The Productivity Commission's inquiry into improving support for parents with new born children is due for report in February 2009. There will be opportunity for the public to particpate through public hearings and submissions.